(Reuters)-The late release of new 5G phones led to Apple Inc. AAPL.O Customers delayed buying new equipment, causing the company to announce the biggest quarterly decline in iPhone sales in two years on Thursday.
Apple once fell more than 5% in after-hours trading, evaporating $1
Since 2013, Apple has delivered a new iPhone every September like a clockwork. However, the delay caused by the pandemic delayed the announcement by one month, and some equipment has not yet been delivered.
Although the vigorous development of Macs and AirPods made overall revenue and profits exceed analysts’ expectations, iPhone sales fell by 20.7% to $26.4 billion. (Graphic: tmsnrt.rs/3ecmgCG)
Investors expect the sales of the Cupertino, California company’s best-selling products to decline, but this inhibition is worse than expected, especially in China, where consumers using 5G are more likely than the United States or Europe. many.
Most of Apple’s sales this year have exceeded expectations and have released a series of new products and services. These new products and services are in the hands of customers for most of the pandemic and are therefore welcomed by customers.
Apple Computer said that according to Refinitiv’s IBES data, revenue and profit for the fourth fiscal quarter ended September 26 were $64.7 billion and 73 cents per share, while analysts’ estimates were $63.7 billion and 70 cents per share. .
But the launch of the flagship iPhone 12 was postponed to October 13, a few weeks later than usual, which means that the fourth quarter’s performance did not include iPhone sales open on weekends.
In an interview with Reuters, Apple CEO Tim Cook said that according to the first five days of the release of the data, he was “optimistic” about the iPhone 12 cycle.
“5G is a once-in-a-lifetime opportunity. Cook said: “When we do this, we will never be excited about actually breaking into the market. “At least in the United States, operators are very active. “
The launch of the iPhone 12 reduced sales in Greater China by 28.5% to 7.95 billion US dollars. Cook said that he expects the new 5G equipment to help iPhone sales in China resume.
Cook told Reuters: “We saw it in the early stages of the first five days, and this made us confident that China will resume growth in the first quarter.”
Apple did not provide revenue growth forecasts, but Chief Financial Officer Luca Maestri (Luca Maestri) said that revenue from services and non-iPhone products will grow by double digits in the first quarter, in line with analyst expectations. He said that iPhone revenue will also grow, which means that the ratio will reach single digits. According to data from Refinitiv, analysts expect iPhone revenue in the first quarter to increase by 6.45% to 59.56 billion US dollars.
Edward Jones analyst Logan Purk said: “Although iPhone sales will grow during this cycle, it is disappointing compared to the increased expectations because we believe that 5G will not It will become an attractive reason for the upgrade wave.”
In recent years, Apple has offset the impact of iPhone sales fluctuations through steady growth in its service areas (including streaming music and TV). Service revenue increased by 16.3% to $14.5 billion, compared with analysts’ expectations of $14 billion. Cook told Reuters that the Apple One bundled service, Apple One, will be launched on Friday.
Cook told Reuters that Apple has 585 million paying users on its platform, up from 550 million in the previous quarter and closer to the company’s goal of 600 million users by the end of the 2020 calendar.
In the past two years, Apple’s stock price has soared because it diversified its sources of income to reduce its dependence on the iPhone. Thursday’s plunge in stock prices raised the question of whether Apple still relies on iPhone sales more than some investors hope.
Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown, said: “Apple needs to be able to maintain the upgrade cycle, otherwise the stock price will fluctuate because the current valuation has no real room for forgiveness.”
Apple Computer said its accessories division’s revenue increased by 20.8% to 7.9 billion US dollars, while according to Refinitiv data, analysts expected an increase of 13.5% to 7.4 billion US dollars. According to data from Refinitiv, sales of Mac and iPad increased to 9 billion U.S. dollars and 6.8 billion U.S. dollars, respectively, while expected to be 7.92 billion U.S. dollars and 6.12 billion U.S. dollars.
Reporting by Stephen Nellis in San Franicsco; Other reports by Noel Randewich; Editing by Lisa Shumaker